Will we get price cuts in North America?

[wayner]

Tesla has been substantially cutting prices in Asia over the last few months, with another big cut coming in the last day. I wonder if we will see this here in North America as well.

The China prices of the Model 3 and Model Y cars are now 24% to 32% lower than those in the United States, Tesla's largest market, Reuters calculations showed, due to reasons including different material and labour costs.

Tesla cuts car prices in China, Japan, South Korea and Australia

EV maker marks down best-selling Model Y and Model 3 as demand weakens

asia.nikkei.com

 

[MexiCanuck]

Tesla has been substantially cutting prices in Asia over the last few months, with another big cut coming in the last day. I wonder if we will see this here in North America as well.

Tesla cuts car prices in China, Japan, South Korea and Australia

EV maker marks down best-selling Model Y and Model 3 as demand weakens

asia.nikkei.com

I wonder whether Tesla thinks we already have a “price cut”. Looking at the long-range Model Y price (not including “gas savings”) on the Canadian and US pages I see C$85,000 and US$65,990. US$65,990 is about C$89,129.

Maybe Tesla thinks we already have a C$4,129 “discount”.

 

[wayner]

The implied FX rate there is 1.2880 - which is were we in the middle of last year and is roughly the average exchange rate for 2022. But you make a good point, that they didn't raise prices here to reflect the weakness of the CAD.

 

[MexiCanuck]

The implied FX rate there is 1.2880 - which is were we in the middle of last year and is roughly the average exchange rate for 2022. But you make a good point, that they didn't raise prices here to reflect the weakness of the CAD.

No doubt the numbers vary from day to day. I just went to XE.com and plugged in the numbers and it gave me the values today.

 

[MacNeil]

Tesla has been substantially cutting prices in Asia over the last few months, with another big cut coming in the last day. I wonder if we will see this here in North America as well.

Tesla cuts car prices in China, Japan, South Korea and Australia

EV maker marks down best-selling Model Y and Model 3 as demand weakens

asia.nikkei.com

In North America it would seem, for the moment, that production and demand are pretty much in balance, particularly for the 3 and Y. Inventory at their sales centers is around 100 in Canada and 500 in US. That could change as the production ramp at Austin continues. Slower demand in China recently and Shanghai "losing" some European sales with the ramp up in Germany continues probably creates more pressure for Tesla to boost sales in Asia by reducing prices.

 

[EvWizard]

I would fully anticipate price decreasing sometime in the 1Q of 2023. There should be another interest rate hike soon after the recent strong job's report, which will further erode consumer confidence and their purchasing power. As noted above, more cars will be pumped out from Austin looking for a home, adding to supply. Further, Telsa just announced Tom Zhu (head of sales for China) will transition to look after North America sales. This may bring forth greater operating efficiencies widening their margin thereby "allowing" them to lower prices.

 

[wayner]

So your are in the "Good news is bad news" camp as you are assuming that a strong jobs report will erode consumer confidence. The strong jobs report means the BOC will likely continue to increase rates, maybe with 3x 25bp increases, but more people having jobs is generally a good thing!

 

[wayner]

Tesla owners in China are protesting the price cuts:

Li, a Tesla owner who provided only his surname for fear of being investigated by police, joined more than 20 other car owners to stage a protest at Tesla’s delivery centre in the eastern city of Wenzhou on Sunday.

“Tesla is lowering its prestige as a premium EV brand by cutting prices time after time,” said Li, who owns a Model 3. “A Tesla salesperson told me that they intended to raise prices in the second of 2022, so I scrambled to place an order. I feel myself being lied to.” Li said the protesters handed over a list of demands to Tesla to compensate for the price drop. The list included a lifetime subscription to the EV maker’s self-driving services and a three-year extension of car insurance. Li said the company promised to give them a response by Tuesday.

Ling, a Chengdu-based Tesla owner who asked to be identified by a nickname, told the FT that he bought a Model 3 vehicle in October. “I feel like I’m a joke while driving my Tesla on the road now,” Ling said. “I’m so upset that I even started considering getting a new car from a different brand.”

 

[vickh]

I'm curious if price cuts are coming to Model X used market (direct thru TSLA). Seeing some around $50K here in AZ but not for 3 rows (key deal maker for us)

I have reached out to TSLA but they don't seem to care other than new sales (at least the rep I texted)

 

[EvWizard]

Boom, $15K price drop for Model Y LRAWD

 

[wayner]

Wow! I wonder when it comes to Canada:

 

[vickh]

Boom, $15K price drop for Model Y LRAWD

I timed it perfectly with my question on Mon. Also Tax credit...